Investing

Spain and Italy Bond Yields Soar, Markets Fall

Fear of recession and national budget deficits that could trigger bailouts caused yields on Spain and Italy debt to soar.

Spain’s two-year rose to 6.08% up 51 basis points. Italy’s 10-year rose 22 basis points to 6.36%. Panic in the market rose as Spain said its GDP dropped 1% year-on-year.

According to MarketWatch:

Worries over Spain and Greece pushed European stocks sharply lower on Monday, led by steep declines for banks. The Stoxx Europe 600 index dropped 0.9% to 255.96. Spanish stocks were among the worst performers, following concerns the country will have to ask for a full sovereign bailout. The IBEX 35 tumbled 1.8% to 6,137.50, weighed by Banco Santander SA which was off 2.1%, Italian stocks dropped sharply, with the FTSE MIB index losing 2.5% to 12,741.06.

Douglas A. McIntyre

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